Guidance on how to
reduce the risk of interventions by the UK Border
Force and HM Revenue & Customs, and how to minimise
any delays when interventions do occur.

Over the years several
articles have appeared in BIFA link on the sometimes
contentious subject of export controls.

Our Members have
concerns about what they regard as inconsistent
enforcement of the appropriate legislation. BIFA
raised these points with government, and, in part,
this article summarizes the outcome of these
discussions and highlights some practical steps that
can be taken to minimize any delays should there be
an intervention.

Given the twin facts
that certain groupings are hostile to the UK’s
interests and that there is considerable instability
in certain parts of the worlds, it would not be
reasonable to expect that there should be no
controls on the export of military and ‘dual-use
items’ from the UK. Given that most international
trade is legitimate, many find it particularly
frustrating that their consignments are stopped for
investigation and subsequently released without any
explanation being given.

BIFA’s concern is that
these interventions are sometimes neither
particularly well targeted nor managed. As one
Member noted the Detention Notice was sent directly
to the exporter by second class post leading to
unnecessary delays, and the UK Border Force (UKBF)
was reluctant to speak to him as the customs agent.
This causes the freight forwarder significant
problems obtaining information, particularly on
consolidated shipments when multiple shippers’
export consignments are delayed.

Goods are ‘controlled’
for various reasons and are listed on the UK
Strategic Export Control Lists or are on additional
Sanctions Lists.

Consequently a licence
is required because the goods are classified as
‘controlled’ items, regardless of the end-user. The
following broad categories of goods are likely to be
controlled:

Items that have been
specifically designed or modified for military use
and their components;

‘Dual-use’ terms – are
those goods and their software and components that
can be used for either civilian or military
purposes. These products have to meet certain
specified technical standards to be classified as
dual-use goods;

Goods that might be
used for torture;

Radioactive sources.

The key point is that
all the above are specific items and can be clearly
identified and ‘rated’, or classified to establish
whether or not they require a licence.

However, other goods
are not listed but there are concerns about
end-use. For instance, there might be concerns that
an overseas organization could use the items in a
Weapon of Mass Destruction (WMD) or military
programme in an embargoed destination. In these
situations, the Export Control Office (ECO) of the
Department for Business, Innovation and Skills (BIS)
makes the export licensable via ‘end-use’ control
classification. BIFA’s strongest guidance to its
Membership is to avoid becoming involved in
determining or obtaining licenses on behalf of
customers – the potential risks are too great.

However, the freight
forwarder can render assistance and guidance about
the correct procedures to be followed and where to
find the information that will allow their customer,
the exporter, to determine whether or not the goods
require a licence. It is obviously beneficial to
all parties to conduct the appropriate checks before
the goods are loaded.

There are numerous
links from this main site which take the reader into
all the main elements of the system.

It is particularly
important that exporters appreciate the need to
accurately classify their goods and that it is
understood how to use ECO’s information and online
tools – Goods Checker and the Control Search Tool.

However, as previously
indicated, it is not necessarily the goods that
require a licence, it is the end-user of the
shipment who causes concern and leads to a licence
being required.

There is a belief in
government that the End-User Advice Service is by
far the best method for exporters to use regarding
end use control.

Any exporters shipping
to a destination of potential concern should use the
service to ascertain whether there are any current
concerns with an entity. This will result in a
Yes/No answer, in writing, from BIS ECO.

When dealing with
certain countries, it is important for the exporter
to carry out as many checks as possible. There are
lists kept of what are referred to as designated
entities, who are individuals or businesses subject
to financial sanctions and who should not be traded
with. There are various lists covering such
entities, such as at:
www.gov.uk/government/publications/financial-sanctions-consolidated-list-of-targets.

Exporters,
particularly in defence and hi-tech manufacturing
who conduct business in certain areas, should be
encouraged to familiarize themselves with export
controls. In particular, if a shipment is stopped
it is important that the forwarder highlights the
issue to its customer with a recommendation to
investigate the methods to minimise the possibility
of future interventions.

It is important that
shippers provide as much information as possible
about shipments for their freight forwarder to
retain on file. This will be particularly useful,
because, although it may not prevent an export from
being stopped by HM Revenue & Customs (HMRC/UKBF),
it can only facilitate speedy expedition, and it can
give the exporter a warning before it ships.

We must remember that
it is a criminal offence, not a minor misdemeanor,
to export, import or trade in any controlled goods
without a specific licence. Other items may well
require a licence for destination countries that are
subject to embargoes and sanctions. Whilst the
guidance that we have given will not prevent every
problem, it will help minimise interventions and any
delays when they occur.